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Review into the ATO’s administration of valuation matters

A report to the Assistant Treasurer

September 2014

Table of Contents


Telephone: (02) 8239 2111
Facsimile: (02) 8239 2100

Australian Government - Inspector-General of Taxation crest

Level 19, 50 Bridge Street
Sydney NSW 2000
GPO Box 551
Sydney NSW 2001

30 September 2014

Senator the Hon Mathias Cormann
Acting Assistant Treasurer
Parliament House
Canberra ACT 2600

Dear Minister,

Review into the Australian Taxation Office’s (ATO) administration of valuation matters

I am pleased to present you with my report of the above review. Valuation requirements in tax laws and their administration has been a persistent concern raised by a range of taxpayers.

I have made three recommendations for the Government’s consideration. They seek to limit the need to conduct valuations particularly for small businesses. They include requiring valuations only where it has the ‘highest net benefit’, providing shortcuts or safe harbours as an alternative to conducting fresh and full valuations and tapering the eligibility criteria for tax concessions.

I have also made nine recommendations to the ATO, with almost all of which the ATO has agreed. They are largely aimed at preventing disputes from arising by, for example, the ATO adopting a more transparent and proportionate approach to challenging taxpayer valuations and allowing some divergence in valuations where they are purely attributable to the differing professional judgement of each party’s valuer.

I am grateful for the support, contribution and willingness of those who provided their time, expertise and experience in the conduct of this review.

Yours faithfully,

[SIGNED]

Ali Noroozi

Inspector-General of Taxation


© Commonwealth of Australia 2014

ISBN 978-1-925220-12-4

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